How insurance is priced, how limits work, and what affects your premium. 10 terms to help you compare quotes intelligently.
Aggregate Limit vs Per Occurrence
Per occurrence is the max per single claim; aggregate is the hard cap on all claims combined for the entire policy period.
Coinsurance
A property-insurance clause requiring you to insure your property to a set percentage of its value (often 80–100%) or face a proportional penalty on claims.
Also: Coinsurance Clause · Coinsurance Penalty
Deductible / Retention
Deductible and retention are often used interchangeably — both refer to the amount your company pays out of pocket before the insurer covers the rest.
Also: Self-Insured Retention · SIR · Deductible
Exposure
The degree to which your business is vulnerable to a particular risk.
Loss Run Report
A formal record of all insurance claims filed on a policy during a specified period, used by underwriters to assess your risk history.
Also: loss runs · loss run · claims history report
Policy Limit
The maximum amount your insurer will pay for covered claims.
Premium
The amount you pay for your insurance policy.
Rating Factors (Cost Drivers)
The variables underwriters use to calculate your premium.
Sublimit
A lower limit within your policy that caps coverage for a specific type of loss.
Underwriting
The process insurers use to evaluate your risk and decide coverage terms.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.